UBA Grows Profit by 33% to N190 Billion in Q1 2025, Demonstrates Resilience and Strategic Strength
United Bank for Africa (UBA) has demonstrated remarkable resilience and strategic prowess in navigating the complexities of the banking landscape, as evident in its Q1 2025 financial results. Despite the challenges posed by high interest rates and rising operational expenses, UBA’s robust core banking operations and diversified income streams have enabled the bank to deliver a strong performance.
The bank’s profit before tax surged by 30.65% year-on-year to N204.27 billion, driven primarily by a 36.09% growth in interest income to N599.83 billion. This increase was fueled by higher yields on investment securities and loans to customers, as well as a significant rise in income from placement with banks and loans to other banks. However, UBA’s interest expenses also witnessed a sharp increase of 77% year-on-year to N247.96 billion, primarily due to higher funding costs in a high-interest-rate environment.
UBA’s ability to manage its credit risk is notable, with the bank setting aside N18.609 billion as provision for expected credit losses, significantly higher than the N7.139 billion provided in Q1 2024. Despite this, the bank’s net interest income grew by 17.03% year-on-year to N351.88 billion, underscoring its capacity to maintain profitability in a challenging environment.
The bank’s non-interest income streams also showcased impressive growth, rising by 44.21% year-on-year to N112.36 billion. This was driven by strong performances in fee and commission income, net trading, and foreign exchange income. Digital banking played a pivotal role in this growth, with electronic banking income increasing by 7.86% year-on-year to N47.84 billion.
On the balance sheet front, UBA’s total deposits grew by 4.43% to N22.86 trillion, while its investment in securities increased significantly by over N1.2 trillion in Q1 2025. This strategic allocation reflects the bank’s efforts to capitalize on attractive yields in fixed-income markets while maintaining liquidity and balance sheet strength.
In the stock market, UBA’s share price demonstrated mild volatility in Q1 2025, reaching a 52-week high of N39.00 on February 13, 2025, before settling at N34.00 by April 25, 2025. As of July 16, 2025, the bank’s current price stands at N50.50, with a market capitalization of N1.79 trillion.
Looking ahead, UBA’s strong Q1 2025 performance positions the bank for continued success, driven by its strategic focus on growing interest income, strengthening fee-based revenue, and maintaining operational efficiency. With its diversified business model and robust financial fundamentals, UBA is well-equipped to navigate the challenges of the banking landscape and deliver sustainable value to its stakeholders . Don’t change anything in this article
